Rents,knowledge and neo-structuralism: transforming the productive matrix in Ecuador

This paper explores the relationship between ground rent, production and knowledge in Ecuador’s neo-structuralist, state-led project to transform the productive matrix. Based upon insights from the Marxian approach to the critique of political economy, we interrogate how neo-structuralism has conceptualised the relationship between ‘natural resource income’ and ‘knowledge-based’ economic development. The paper argues that a rent-theoretical perspective, which takes seriously the regional unfolding of uneven geographical development in Latin America, can highlight the limits of a national development plan conceived according to the logic of Schumpeterian efficiency. In doing so, the paper identifies the contradictory relationship between natural resource exports, state-led ‘knowledge’-based development and capital accumulation. On this basis the paper offers a historically and empirically informed critical analysis of selective import substitution industrialisation and vanguard science and technology strategies designed to transition Ecuador away from primary resource dependence.     

‘In and Against the State’? Venezuela’s Education Missions and the Struggle for a Democratic Alternative

In Latin America, dissatisfaction with neoliberal democracy has led to a search for alternatives based on more participatory forms of citizen engagement that have overtly pedagogical dimensions. This paper focuses on Venezuela’s Adult Education Missions to illustrate the possibility but also the inherent contradictions of education ‘in and against the state’ to enhance grassroots critical consciousness and mobilisation. It argues that while considerable progress has been made at the micro level, structural change from above to redistribute power and transform capitalist relations of production has been insufficient and that this threatens the future of the project for radical social change.     

Latin American environmentalism: Comparative views

This article examines three common generalizations from the literature on Latin American environmentalism. The validity of these generalizations, structured as hypotheses, is tested with four case studies from Costa Rica, Mexico, Venezuela, and Brazil. The first generalization is that tensions arise between international environmentalists principally concerned with wildlands conservation and national environmentalists engaged in a broader array of local and domestic issues including urban environmental quality and access to natural resources. The second is that environmental groups in Latin America are elitist in structure and participant base. The third is that the particular tactics employed by environmentalists will be closely tied to the relative openness of their nation’s political system. Through a cross-disciplinary case study approach we find the first two hypotheses quickly break down upon closer inspection, while the third is supported. We suggest a modified framework for interpreting environmental activism in the region, one that weights the role of the state as well as the competing strategies employed by grassroots, private voluntary, and professionalized environmental groups. Latin American environmentalism is highly diverse, presenting many faces in different time periods and different countries. Developing one general theory of environmentalism in Latin America is impossible, but more specific categorizations of the middle range may be achievable.     

Going Underground: the political economy of the ‘left turn’ in South America

This article argues that South America’s ‘revolutionary’ left turn can be best explained by its assertion of state property over natural resource extraction. The recent history of the leftist movements in Venezuela, Bolivia and Ecuador relates to the failures of the neoliberal reforms applied in the region decades before, hence the dismantling of core orthodox policies has been critical for them once in power. This has been possible through the expansion of state action in the economy, but mainly through the governance of hydrocarbon extraction and the control of subsoil rents. Resource extraction has been central to the political economy of Andean left-wing revolutionaries, responsible for many of their successes but also their impending challenges. This rearticulation of underground governance is linked to global transformations that give prominence to emerging economies and reinforces these countries’ position in the world economy as providers of primary commodities.     

Hemispheric reconfigurations in Northern Amazonia: the ‘Three Guianas’ amid regional change and Brazilian hegemony

Regional and hemispheric reconfigurations in Latin America and the Caribbean are increasingly mediated by Brazilian power, and the engagement of Guyana, Suriname and French Guiana with this emerging context is intriguing. They are tentatively moving away from a Caribbean region with which they are culturally contiguous, towards a South American continent in which they are geographically located. This is partly a reflection of the gradual opening up of the Northern Amazonian space that they share collectively, and also with Venezuela and Brazil. These processes are occurring as cause and effect of Brazil’s emergence as a regional – and even regionally hegemonic – power. With reference to wider debates on regionalism and hegemony, we analyse the uncertain consequences of these shifts.     

Structural Transformation in Africa: Static Gains,Dynamic Losses

Abstract

This paper places recent growth and structural transformation in 11 Sub-Saharan African countries in historical and international perspective. During the early post-independence period, resources were reallocated to manufacturing activities with high productivity growth. Structural change stalled in the mid-1970s. When it resumed in the 1990s, workers mainly relocated to distributive trade services. Productivity levels in these activities were higher than in agriculture, enhancing overall economy performance. But services productivity growth was sluggish and increasingly falling behind the world frontier. These patterns are also observed in Latin America, but not in Asia.     

Intellectuals and political strategy: hegemony,posthegemony, and post-Marxist theory in Latin America

Recent work on posthegemony has sought to displace the theory of hegemony as the primary mode of understanding politics, particularly with respect to Latin America. However, this work has yet to address the history of the theory of hegemony in Latin America itself. The present article traces the history of the theory of hegemony as a reference point for Marxists in twentieth century Argentina, working through key texts from the theory’s regional introduction by Héctor Agosti, through the work of Pasado y Presente, to that of Ernesto Laclau. I argue that the theory of hegemony in the Argentine context has historically served to place intellectuals and their productions at the centre of history, and has conceived of political strategy and organisation from this perspective. Understanding this limitation and its history, I conclude, will give posthegemony theory the strategic and conceptual bearings by which to surpass the problematic of hegemony.     

Corporate power,US drug enforcement and the repression of indigenous peoples in Latin America

Abstract

The question that motivates this article is: what are the mechanisms through which the prosecution of the drug war in Latin America lead to human rights repression? In answering this question, I theorise that drug enforcement is a coalition of actors that facilitates domestic and international consensus around prohibition as a mechanism for corporate expansion. Drug war infrastructure financing is likely to facilitate the expansion of corporate investments by resource-seeking industries that require greater land use, which encroaches on the ancestral territories of indigenous peoples. And, in response to indigenous resistance to corporate appropriation of ancestral lands, resource-seeking transnational corporations will collude with private security firms and paramilitary organisations to repress and eliminate indigenous resistance. In the process of accumulating capital in Latin America, transnational corporations, domestic security, and paramilitary organizations are the drug enforcement coalition’s mediators of terror.     

Nationalist Versus Dependent Capitalist Development: Alternate Pathways of Asia and Latin America in a Globalized World

When compared to Latin America, Asian economies since 1980 have grown faster and have done so with relatively modest inequalities. Why? A comparison of Asia and Latin America underlines the superiority of the nationalist capitalist model of development, which has often been pursued more explicitly in Asia, over that of a dependent capitalist model, which has often been pursued in Latin America. In comparison to Latin America, the Asian model has facilitated higher and less volatile rates of economic growth and a greater political room to pursue social democratic policies. The “tap root” of these alternate pathways is relative autonomy from global constraints: states and economies in Asia have been more nationalist and autonomous than in Latin America.     

Development strategy and regime type: Why doesn’t democracy matter?

The development strategy literature argues that autonomous bureaucrats in authoritarian Asian NICs followed successful export-led growth strategies while Latin American policymakers were pressured by mobilized sectors to maintain doomed import substitution industrialization. What is more, this ISI strategy made the consolidation of democracy impossible. However, my research on Venezuela indicates that ISI and democracy can be made compatible—the democratic state was penetrated by business and labor, those avenues for penetration were protected from electoral politics, and the relative participation of business and labor remained fluid. How are recently established democracies being made compatible with a new market-oriented development strategy? Evidence from East Asia and Latin America indicates that the transition to market-oriented economies and the institutionalization of participation by key sectors have not gone together. Policymakers are trying to isolate bureaucrats from public pressure and centralize power away from bodies vulnerable to electoral oversight. The “deinstitutionalization” of democratic politics may make the relationship between regime type and development strategy unstable.     

Not throwing the baby out with the bathwater: a Gramscian response to post-hegemony

This article offers a Gramscian response to the theory of post-hegemony, suggesting that its rejection of Gramsci rests on misrepresentations of his work. Through a closer engagement with this work, the article outlines the ways in which Gramscian analysis can in fact complement the insights of post-hegemony in analysing the ways in which the social order is secured and the strategies of resistance to this order. This combination of Gramscian and post-hegemonic insights, the article argues, offers a more nuanced and comprehensive insight into power, radical politics and resistance in the twenty-first century, an insight which risks being lost in post-hegemony's rejection of Gramsci and his work. The utility of this combined approach is illustrated via four short vignettes from contemporary Latin America: the emergence of the student protest movement in Chile since 2011; the Caracazo in Venezuela; the Argentine crisis in 2001; and the Bolivarian Revolution in Venezuela.     

Antitrust policy in a hostile environment: institution building in venezuela's procompetencia

Theories of bureaucracy in Latin America generally stress institutional weakness, political volatility and the politicized nature of government agencies. One product of market liberalization in Venezuela was the creation of the anti-monopoly agency called “Procompetencia”, which managed to survive a change of government and a move toward interventionist, anti-market mechanisms hostile to its survival. The strategy and tactics of this agency are reviewed with the objective of detecting bureaucratic responses to threat and successful efforts to survive. Some lessons are derived for infusing more stability into weak institutions.     

Latin America's Left Turns: beyond good and bad

In rapid succession leftwing parties have been elected to government in some of the most important countries in the Latin American region. I challenge the view that there are two distinct variants of the left—one populist, the other social democratic—and argue that variation on the left reflects the diverse conditions under which these forces emerge and evolve. I outline common features shared by the left in Latin America; suggest how the concept of populism and analysis of social movements can help explain this variation; and show how the left's commitment to egalitarianism, balancing markets, and, in some cases, its appeals to the constituent power of the people enabled it to benefit from disillusionment with the results of neoliberalism, the poor performance of democratic governments in Latin America, and the evolving international context.     

Worlds Apart: Social Policy Regimes in Latin America

The region of Latin America exhibits significant diversity with regard to the size and scope of social protection programs. In this article, I propose a new way of measuring a country’s “social policy regime,” moving past expenditure-based conceptions of welfare provision to incorporate the coverage of programs. Employing this new measure, I use cluster analysis to demonstrate that Latin American social policy regimes cluster into four distinct categories. I then employ the comparative historical method to test a theory of why countries fall into each of these four categories. The analysis provides evidence that a country’s record of industrialization, the nature of political incorporation, and levels of ethnic and racial diversity are key determinants of the size and scope of Latin America’s social policy regimes.     

What Drives Japanese INGOs to Operate in Latin American Countries?

International nongovernmental organizations (INGOs) provide essential aid and public services to less-developed countries. Although most literature focuses on Western INGOs, Asian INGOs have also become globally active. Little is known about what motivates INGOs to provide services in other regions, such as Latin America. In this study, we seek to identify the criteria Japanese INGOs use to select Latin American recipient countries. We propose that Japanese INGO operational location decisions are a function of Japanese foreign policy agenda, Japan-recipient country business relations, and recipient country’s need and liberalization. Using data from Japanese INGOs working in Latin America and 24 Latin American countries on contextual, macroeconomic, and demographic indicators, we find that the significant factors driving INGO decisions to operate in Latin American countries are need and the presence of Japanese businesses in the recipient country. Results have practical implications for foreign aid targeting and economic development.     

This time it’s different: lithium extraction,cultural politics and development in Bolivia

As governments throughout Latin America have increased their dependence on resource extraction, the debate around extraction-based development has been reinvigorated. This article argues that, despite historical failures and recurrent conflicts associated with extraction-based development, the way in which development is experienced and conceptualised at the subnational level demonstrates why extraction continues to be perceived as a legitimate means for development. These findings show that, as resource extraction continues to play a critical role in the overall development transition of Latin America, the process must be understood and theorised in relation to the experiences and expectations of actors at multiple scales.     

Theorising state–narco relations in Bolivia’s nascent democracy (1982–1993): governance,order and political transition

Conventional policy and academic discourses have generally held illicit drug economies in Latin America to be synergistic with violence and instability. The case of post-transition Bolivia (1982–1993) confounds such assumptions. Applying a political economy approach, this article moves beyond mainstream analyses to examine how the Bolivian drug trade became interwoven with informal forms of governance, order and political transition. I argue that state–narco networks – a hangover from Bolivia’s authoritarian era – played an important role in these complex processes. In tracing the evolution of these interactions, the article advances a more nuanced theorisation of the relationship between the state and the drug trade in an understudied case.     

Natural resources and corruption in post-war transitions: matters of trust

Many ‘post-conflict’ countries face difficulties in reaping the full benefits of their natural resource wealth for reconstruction and development purposes. This is a major issue given these countries’ needs and the risk of seeing ‘mismanaged’ primary sectors undermine a transition to peace. Bringing together debates about the ‘inequality-mistrust-corruption’ trap and relationships between natural resources and corruption, this paper suggest that some resource sectors may be more likely to foster inequalities, and thereby increase corruption and distrust, while others are less likely to do so. Reviewing arguments and empirical evidence, I point to the relative importance of transition contexts, stakeholder incentives and resource sector characteristics, and suggest how resource-related corruption may be better understood in relation to trust-building and reconciliation processes.     

The new business environment of latin america and the caribbean

Latin America and the Caribbean Region experienced dramatic changes in the 1990s. Politically, all but one country, are governed by a democratically elected government. Economically, import substitution industrialization policies (ISI) followed in the past, were replaced by liberalization programs aimed at reducing inflationary pressures and creating a competitive environment.

The significant increase in capital flows to Latin America in one single year, 1990, buried the 1980s as the “lost decade,” and the successful implementation of privatization programs region-wide prompted to affirm that the 1990s might constitute the “Latin America's decade.” Where does the euphoria come from? Is there any implicit promise to be derived from such international capital flows? Will the pattern be sustained? Has Latin America begun a new era? Are unfolding events on defiance of fundamentals?

These and many other questions can be raised regarding the spectacular transformation of Latin America and the Caribbean, particularly when analysts still debate about the Mexican crisis of 1994, investors eagerly pursue the agenda of a second privatization wave, experts around the world get fascinated with the high-tech push found in Latin America, bankers apply Latin American lessons to deal with the currency crisis in Asia, and casual observers recognize the value-creation process added by Latin American entrepreneurs who challenge the most adverse circumstances. Indeed, Latin America and the Caribbean is a land full of promises and contrasts, where there exists a head to head competition between globalization and nationalism, the haves and the have-nots, capitalism and communism, literature and high-technology, markets and governments, East and West, North and South, myth and reality, and … “despair and hope.”

There is no question, however, that Latin America and the Caribbean, being she a detached wide-land, is a region of great opportunity. Since the external debt crisis of 1982 and its aftermath, democracy, open markets, economic reform and privatization have blended to offer great expectations and opportunities for business and investment in the region. The new vision strongly questioned the status quo to render a new business environment to open the doors and light up the roads of the upcoming millennium.

It is the purpose of the International Journal of Public Administration to offer to its readers, for the very first time, a special issue devoted entirely to the discussion of the new business environment of Latin America and the Caribbean. We are, therefore, grateful to all the authors who generously are sharing with us the findings from their scholarly research. Given the far reaching consequences of their contributions, we, as guest editors of this special issue, had no other choice but to incorporate the fruits yielded by this symposium of thirty-seven papers in four issues in one single volume. The papers have been sorted according to the following four focal points: Privatization of State Owned Enterprises; Mexico; Economic, Financial and Foreign Investment Issues; and Economic Integration, Trade and Cultural Issues.

Part I of this special issue on “The New Latin American Business Environment” looks at one element of the broad economic strategy followed by most Latin American countries: Privatization of State Owned Enterprises. The role of governments is to provide the framework that will allow the private sector to create wealth. Notwithstanding, this partnership between the public and private sectors must ensure the inclusion of the poorer sections of the population. In many ways, the long-term sustainability of these economic programs will largely depend on this. The ten papers selected for this part, provide insight on how this phenomenon is affecting different Latin American countries.

The first paper by Shamsul Haque argues that there is a need to analyze the social consequences of privatization programs. Further research is needed to identify the main advocates and beneficiaries of privatization programs. According to the author, “critical economic conditions have not improved significantly after privatization, and in many instances, the conditions have deteriorated.” About fifty percent of Latin America's population of 470 million people live under poverty.

The late Sister Martin Byrne (1) documents in her paper, “Cananea Consolidated Copper Company from Nationalization to Privatization: 1972-1991 ,” the problems of ownership and management faced by La Cananea, a Mexican copper mine. Sister Byrne argues that “The Cananea mines were profitable under entrepreneurial and MNC ownership, but proved to be a financial drain on the government during the paraestatal period.”

The third paper by Garcia and Dyner, examined the reform and regulation of electricity in Columbia. According to the authors, the regulatory framework adopted by the government is going to determine the success of these programs. Furthermore, “the challenge is the change of public intervention in the sector, so that it regulates, supports, and supervises the decentralized activities of the firms, and liberates resources to be invested in other areas.”

Walter and Gonzalez provide interesting philosophical arguments on technology and human resources management derived from the cases of privatized companies in Argentina. The authors consider two variants, “systemic modernization and revamping of existing teams” to invite a reopening of the old debate on technological blending. They argue, however, that “to compete you do not necessarily need to ‘ be on the frontier.’”

Joan B. Anderson examines, the “Privatization, Efficiency and Market Failure: Transforming Ecuador's Public Sector,” privatization in Ecuador through the shift experienced by development theory with respect to the role of the public sector. In this paper the author points out that “while careful privatization can be positive, privatizing monopolies like the electric utility and/or quasi-public goods like highways are likely to be detrimental to long run economic development.”

Doshi identifies the successes and failures of the privatization program in Mexico by analyzing the cases of Mexicana Airlines, Aeromexico and Telmex. The author argues that even though the government was able to sell a number of state owned enterprises, a “successful” privatization program required appropriate macroeconomic policies and defining the role of foreign investment in economic development. One can argue then, that even though the size of the state is shrinking, its role is becoming more important.

The article by Vetter and Zanetta analyze also the case of Argentina. The authors argue that in order to consolidate the economic reforms implemented by the national government, provincial reform has to take place. A number of important lessons were identified.

John M. Kirk and Julia Sagebien present, in “Cuba's Market Rapprochement: Private Sector Reform - Public Sector Style,” the highlights of Cuba's process of transition towards a market economy by analyzing the conditions that lead to a market opening as well as the ends, the means and the actors of the ensuing process of economic reform.

Walter T. Molano contributes a paper, “The Lessons of Privatization,” based on his book The Logic of Privatization: The Case of Telecommunications in the Southern Cone of Latin America by looking at privatization as a process that may end up in varied outcomes as seen from microeconomic-, macroeconomic-, and political perspectives of analysis.

The focal point of Part II is Mexico. It is very clear that since the beginning of the decade, Mexico has made major efforts to transform its economy in order to play a more significant role in the global economy. Different attempts have been undertaken leading to: first, address the aftermath of the debt crisis of 1982; second, modernize and open the economy through a structural change that have included, among other programs, privatization, deregulation, fiscal deficit reduction, and trade liberalization: and third, change the political landscape.

Ephraim Clark models, in his “Agency Conflict and the Signaling Snafu in the Mexican Peso Crisis of 1994,” the conflict as a government held option to default and introduce signaling by assuming that the Mexican government had monopolistic information on the economy's true situation. The author argues that “if steps had been taken in late 1993 and early 1994, the crisis element of the adjustment could probably have been avoided.”

Blaine's article examines the role of foreign capital in economic development. By studying the Mexican case, the author answers a number ofvery important questions: How are once protected markets going to react to a large inflow of foreign capital? How did Mexican authorities deal with these inflows? What are some of the lessons that could be derived from the Mexican experience?

Hazera's paper discusses the history and legal basis of Mexican financial groups. On the basis of various stock market and financial statement data, an examination is also made of the groups’ evolution from 1991 to 1994.

Eugene M. Salorio and Thomas L. Brewer consider, in “Expanding the Levels of Analysis of FDI for Improved Understanding of Policy issues: The Case of Mexico,” both macro-, and micro-level shifts of analysis which mutually complement one another, and yield, for example, a “components profile” of disaggregated national level FDI flows which depends on the type of the project. The authors identify far reaching implications for public policy that may be extrapolated from the case of Mexico to the new business environment faced by the Latin American countries.

Francis A. Lees suggests also, from another angle, that the crisis of December 1994 could have been avoided because the financial disequilibrium was clearly evident by mid-1994 just be looking at Mexico's GDP and balance of payments.

C. Bulent Aybar, Riad A. Ajami, and Marca M. Bear provide a comparative study of the recent experiences of Mexico and Turkey. The authors identify common elements in the development and eruption of the crises to conclude that “under capital mobility strong internal and external shocks may lead to explosive crises … even though overall macroeconomic balances are sound.”

James P. D’Mello shows in “An Analysis of Mergers and Acquisitions in Mexico: 1985-1996,” that the Mexican crisis has led to an escalation of corporate restructuring such as mergers, acquisitions and joint-ventures.

Jiawen Yang joins the current debate on the causes of the recent Mexican financial crisis by arguing that “capital inflows that are not well absorbed by the private sector will cause financial instability under a fixed exchange rate regime.”

Part III of the new business environment of Latin America and the Caribbean includes ten papers on Foreign Investment, Economic and Financial issues which add significantly to the understanding of the overall transformation carried out in recent years by this region of the world.

Christopher Korth and Ajay Samant, and Craig A. Peterson andK. C. O’Shaughnessy recognize, respectively in the following two papers, “American Depositary Receipts (ADRs) from Latin America: An Opportunity for American Investors.” and “Financial Investment Via ADRs in Mexico and South America,” the usefulness of ADRs for operationalizing international diversification.

Juan Espana surveys the literature on models and tools currently used to predict exchange rate movements, and aims to suggest market solutions, economic policy measures and institutional arrangements to currency crises. The author analyzes the origin and evolution of the 1994 Mexican Peso crisis, its contagion effects on other Latin American economies, and the measures taken by the affected countries to manage the crisis.

Prakash L. Dheeriya and Mahendra Raj provide, in “An Investigation in Exchange Rate Behavior of Emerging Countries,” insights on the role that exchange rate risk plays by identifying similarities and differences through international comparisons.

Kumar's paper examines the important role of foreign direct investment in promoting economic development. The emphasis here is on the transfer of technology through foreign direct investment.

Neupert and Montoya study the characteristics of’ Japanese foreign investment in Latin America, with a focus on Brazil and Mexico. The authors looked at the preferred modes of entry and the post-entry performance of these subsidiaries.

Thomas M. Fullerton, Jr. shows, in “Currency Movements and International Border Crossings,” through two ARIMAmodels that “northbound bridge traffic to El Paso is nonrandom and follows fairly well defined patterns each year.”

Trevor Campbell makes, in “A Note on the Current and Capital Accounts Compilation of Barbados under the Fourth and Fifth IMFEditions,” a comparison with respect to the composition and structure of the current and capital accounts of Barbados.

Janet Kelly and Alexeis Perera argue, in “Antitrust Policy in a Hostile Environment: Institutional Building in Venezuela's Procompetencia,” that the theories of bureaucracy in Latin America generally stress institutional weakness, political volatility and the politicized nature of government agencies which motivated, in Venezuela, the creation of the anti-monopoly agency called “Procompetencia.”

G. Scott Erickson and Andrea Nhuch recommend in ‘The Latin American Business Environment: Patent Protection Issues” a general hybrid system to deal with patent rights issues.

Finally, Part IV deals with a blend of Trade, Economic Integration and Cultural issues. Since much of the world still tends to view Latin America and the Caribbean in terms of stereotypes, it seems appropriate to end this special issue on the new business environment of the region with a group of papers that revisits the rich mosaic of Latin America, and permits appreciate her new reality.

Isaac Cohen argues, in “Hispanics and Foreign Policy.” that though the primacy of economics in Hemispheric relations provides an opportunity for Hispanic businesses, yet this community will have to act deliberately to benefit from the opportunities that are emerging.

Eva Kras contributes, in “The Viable Future of Mexico and Latin America: A New Business Paradigm,” with a South looking North approach for doing business that challenges the traditional view of business relations.

Guillermo Duenas argues, in “Cultural Aspects in the Integration of the Americas,” that managing cultural integration successfully requires a process of “intercultural learning.”

Andres A. Thompson, Francisco B. Tancredi and Marcos Kisil introduce, in “New Partnerships for Social Development: Business and the Third Sector,” the novel argument that corporate philanthropy can make the difference in social development because grantmaking is still the least frequent used strategy in Latin America and the Caribbean region.

Chris Robertson, Pol Herrmann and Kevin Duffy measure, in “Exploring Perceptions of Technology Between the United States and Ecuador,” perceptions of technology on the basis of the typology of motivators and inhibitors of technological growth.

Melissa H. Birch argues, in “Mercosur: The Road to Economic Integration in the Southern Cone,” that Mercosur represents, in contrast to the historical record of economic integration in the region, an adaptation to the contemporary political climate.

Wu and Longley discuss the rationale for extending NAFTA to Chile. Their study examines also how NAFTA negotiators may address issues such as trade and investment rules, intellectual property rights, and labor and environmental standards among other things.

Roger Kashlak and Srinath Beldona identify, in “Partner Reciprocity, Telecommunications Flows and Balance of Trade Patterns Between the United States and Latin America,” partner reciprocity as the issue at the core of the international long-distance industry.

Ines Bustillo extends, in “Overview of Economic-wide NAFTA Models” computable general equilibrium models to the case of NAFTA.

We hope that this special issue is informative and interesting to business-decision makers, regulatory policy makers, and students concerned with gaining an understanding of the ongoing transformation of Latin American and the Caribbean.

Finally, we are again most grateful to the contributors of articles for making this special issue possible. We would also like to thank Jack Rabin, editor-in-chief of the International Journal of Public Administration, for trusting us the delicate mission of providing to the readers a fresh view of the new business environment of Latin America and the Caribbean.